Final answer:
Closing entries are used to reset the temporary accounts to zero and update the balance in the retained earnings. These entries transfer the balances from temporary accounts to the retained earnings account.
Step-by-step explanation:
Closing entries are used to reset the temporary accounts to zero and update the balance in the retained earnings. These entries are made at the end of the accounting period to transfer the balances from temporary accounts (such as revenues, expenses, and dividends) to the retained earnings account.
For example, if a company has $5,000 in revenue and $3,000 in expenses for the period, the closing entries would debit the revenue account for $5,000 and credit the expense account for $3,000. The net result is that the temporary accounts are reset to zero and the retained earnings account reflects the overall profit or loss for the period.
Therefore, the correct answer is c. closing entries.